FAQ's
Compliance, Safety and Managing Risk Meanings
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What is Risk Management?
Risk management involves a number of important considerations. The objective of risk management is to conserve the physical assets of the business using techniques and procedures that do not necessarily include purchasing more insurance. The first step is to identify all the potential exposures a business faces. Exposures could include being sued by a former employee, having a current employee file a complaint with the Department of Labor, or losing a key customer. It could also be OSHA showing up for an inspection, or not knowing the most recent changes in Federal regulations. In every case, the potential exposures are unique and can only truly be uncovered with a thorough understanding of the management and operations of a business. When done properly, risk management will go beyond insurance and those who implement the techniques generally see a reduction in premium costs as well as a positive impact on their bottom line.
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What is section 125?
Section 125 was regulated by both the Department of Labor (DOL) and the Internal Revenue Service (IRS), allows employees to contribute premiums for medical coverage on a pre-tax basis. Commonly referred to as a "Cafeteria Plan," Section 125's can produce huge fines and tax penalties becoming a major liability if not installed and maintained properly.
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What is records retention?
Federal record keeping requirements are extensive and often repetitive, but it is not simply an onerous unimportant task. In the case of an employee complaint or lawsuit, good records are your best defense. An employer must be able to answer common questions like, "Which records?" and "For how long?"
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What is sexual harassment?
Sexual harassment occurs in a workplace, or other professional or social situation. It involves making unwanted sexual advances or obscene remarks to an individual. This is a genuine concern of employers. Sexual harassment has become one of the most widely publicized issues in the workplace today. No business is immune to sexual harassment charges.
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What is ADA?
The American's with Disabilities Act makes it illegal for employers to discriminate against people with disabilities in regards to any and all employment practices. With one out of every six Americans having a disability, a businesses risk is great in this area.
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What is EEOC?
EEOC stands for Equal Employment Opportunity Commission. When it comes to discrimination and wrongful termination, nothing is clearly defined for an employer. An employer's conduct in the workplace is most often times open to interpretation. Across the nation, juries are increasingly finding in favor of the alleged "victims."
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What is FLSA?
The Fair Labor Standards Act sets minimum wage, equal pay, record keeping, and child labor standards. The Department Of Labor spends considerable time scrutinizing employee status, part-timers, independent contractors and temps.
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What is OSHA?
Every employer is required by law (Labor Code 6400) to provide a safe and healthful workplace for his/her employees. These safety standards are governed by OSHA, The Occupational Safety and Health Administration. As an employer you must ask yourself if you have a safe enough workplace and if you also have the documents necessary to meet OSHA requirements.
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What is FMLA?
The Family and Medical Leave Act of 1993 (FMLA) requires companies with 50 or more employees to allow eligible employees to take up to 12 weeks of unpaid leave within any 12 month period.
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What is COBRA?
The Consolidated Omnibus Budget Reconciliation Act is a federal requirement that ensures a temporary extension of health insurance for former employees. Complicated in design, COBRA compliance is an arduous task of administration and paper pushing. Often times, employers subject themselves to risk by 'forgetting' to send a seemingly unimportant notification.
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What is HIPPA?
The Health Insurance Portability and Accountability Act regulates group employer sponsored health plans, insurance companies, and health maintenance organizations. Regulations affect issues such as pre-existing conditions, discrimination on the basis of health status, renewability of coverage, and access to individual health insurance.